Alain Farm

QMT 4143

Instructor: Mrs. Suzan Abuhalawah

Table of Contents

1. Introduction.................................................................................................................................3

2. Production process of AL Ain Farms.............................................................................................4

3. Defining the three stages of lean application.............................................................................6

Demand stage...................................................................................................................................6

Flow stage.........................................................................................................................................6

Levelling stage..................................................................................................................................8

MUDA, MURI, MURA...................................................................................................................8

4. Map of Current State of Alain Farm..............................................................................................9

5. LEAN METRIC.............................................................................................................................12

6. Map the future state......................................................................................................................18

7. Conclusion and recommendations................................................................................................19

References..........................................................................................................................................21
 1. Introduction
Industry in Which AL Ain Company Operates

AL Ain Farms is the first dairy company established in the UAE and It is the largest integrated dairy
company in the country. The company is based in al ain and has operated since 1981. Al Ain farm is in
the food and beverage industry. It’s a dairy and agricultural company that produces high-quality dairy
products, juices, poultry, and camel milk. Their dairy products include fresh milk, yogurt, laban, and
cheese (Meije, 2021). They also produce fresh juice in various flavors, including orange, lemon mint,
apple, mango, pomegranate, and guava. The poultry section produces fresh chicken and eggs, and
camel milk is a natural superfood, rich in vitamins and minerals.

The food and beverage sector is a highly competitive industry with many customers. The company is
also committed to ensuring the highest quality and safety standards. They fully comply with all
national and international quality and safety standards, including HACCP and ISO.

Users Environment Society Indirect customers

Everyone who acts as Al Ain Farm is Al Ain Farms makes The indirect customer
an independent agent committed to an extra effort to buys Al Ain Farm
for Alain Farm, producing products in improve society by products from a
including any an eco-friendly and dedicating its efforts wholesaler, retailer,
employees, sustainable manner. to producing high- dealer, or another
representatives, The company is quality, safe, and intermediary. The
clients, or dedicated to reducing nutritious products for company is committed
stockholders. its environmental all consumers in to providing the best
impact by utilizing society. Al Ain Farms products to its
energy-efficient are doing it to make customers.
equipment and life better.
renewable energy
sources. The company
also ensures that all its
products are properly
disposed of and
recycled to reduce
waste.

Brief Background of the Company’s Activities, Products, and Services

Al Ain Farms strives to offer high-quality products to meet the needs of its customers. Products are
intended to provide nourishment, refreshment, and comfort. The mission of Al Ain Farms Company is
to be UAE's own Food and Beverage brand of choice that is committed to providing healthy, superior
quality products to its consumers every day. This mission statement is the foundation of the
company's effort to enhance its market presence with scalable and sustainable products and processes
driven by high energy, synergy, ownership, and innovation. The company invests significantly in
acquiring state-of-the-art production lines, enabling faster reach to the market, and has launched
several new product categories.

The company is working to achieve its strategic goals by developing and improving its products,
expanding its presence in the market, and increasing customer satisfaction (GulfNews, 2023). The
company invests in research and development to ensure product quality and scalability and strives to
improve its production processes. Additionally, they are looking to increase their presence in the
market by expanding their distribution networks and improving their marketing and promotional
activities. Furthermore, they are working to increase customer satisfaction by providing superior
quality products and customer service. These efforts are helping Al Ain Farms Company achieve its
vision of being the UAE's food and beverage brand of choice.

Potential Area of Improvement and Implementation of Lean

The main problems faced by Al Ain Farms are related to efficiency and process standardization. To
maintain its competitive edge in the industry, the company needs to ensure that its production process
is highly efficient and standardized so that the quality of its products is consistent. The company must
also ensure its process is waste-free to reduce costs and increase profitability.

Implementing Lean principles can help Al Ain Farms solve these problems and improve its production
process. Lean principles promote eliminating waste and inefficiency from the production process,
ensuring that the process is standardized and that quality is consistent (Mouzani & Bouami, 2019).
Implementing Lean principles can also help Al Ain Farms reduce its costs and increase its
profitability.

2. Production process of AL Ain Farms

Al Ain Farms is a well-known agriculture company that produces a variety of dairy products,
poultry, and fresh produce. One of their popular products is fresh milk, which is produced in
a highly efficient and automated process.

The production process for fresh milk at Al Ain Farms starts with the milking of the cows in
the early morning hours. The milk is collected in stainless steel tanks and transported to the
processing plant. The milk is then tested for quality and temperature before processing
begins.

The first step in the processing of fresh milk is pasteurization, where the milk is heated to a
temperature of 72°C for 15 seconds to eliminate any harmful bacteria. The pasteurized milk
is then cooled down to 4°C and stored in a large stainless-steel tank until further processing.

The next step is homogenization, where the milk is forced through a fine filter to break down
the fat particles and create a uniform consistency. The homogenized milk is then sent to the
filling machine, where it is packed into various-sized containers, such as plastic bottles or
cartons.

The production line is highly automated, with various machines and equipment used for each
operation. For example, there are pasteurization machines, homogenizers, filling machines,
and labeling machines. The facility layout is designed to optimize the flow of materials and
minimize waste. Here is a layout of the production line:

Cow Milking --> Transport --> Pasteurization --> Homogenization --> Filling -->
Labeling --> Packaging --> Storage --> Distribution

The production of fresh milk is planned in advance, with daily production targets set based on
customer demand. The production rate for fresh milk is approximately 40,000 liters per day,
with a lead time of 24 hours. The scrap rate and defect rate for the production process are
very low, at less than 1%. There are approximately 50 employees involved in the production
of fresh milk, with varying roles, such as operators, technicians, and quality control
specialists. The production line operates on a single shift, from early morning until mid-
afternoon.

Al Ain Farms has partnerships with local suppliers for raw materials, such as feed and
packaging materials. The inventory management system is based on a Just-In-Time (JIT)
approach, where materials are ordered as needed and delivered directly to the production line.
The company uses a FIFO inventory system to ensure that the oldest materials are used first.
The warehouses are located near the production plant, and materials are ordered on a weekly
basis to maintain sufficient stock levels.

Overall, Al Ain Farms has a highly efficient and automated production process for fresh milk,
with a focus on customer demand and quality control. Their inventory management system
supports their JIT approach and ensures that materials are delivered as needed to maintain a
smooth production flow.

3. Defining the three stages of lean application

Demand stage
Being lean is a way of reducing all types of waste in the manufacturing process and any
company that wishes to be lean, needs to follow three main stages for lean application. To
effectively implement lean, Alain Farm Company should concentrate on them in this project.
Beginning with the stage of demand, Alain Farm has a knowledge of what the client wants in
a milk bottle, taking into account a variety of factors like size, shape, simplicity of opening,
and even the quality of the plastic materials being utilized. lead time and this is the total time
added and non-added time \required by Alain farm to deliver the milk (order) to the customer
from the moment they receive the order from the customers, lastly is the price that the
customer will pay for the milk bottles (product) (product). Customer ordering patterns are
"habits and routines that consumers establish through the products and services they buy,"
according to Decker (2020). Buying patterns are defined by the frequency, timing, quantity,
etc.” And based on our research Alain farm customer patterns are mostly the same, mostly
buying on a monthly basis with a high quantity of around 100 cartons (each carton 2
packages which is equal to 24 packing out quantity) and this is equal to 2,400 bottles in a
month. Alain farm is operating 7 days a week from 8:00 AM to 5:00 PM with 2 breaks each
of 30min. Based on this information we can find out a lot of important details, starting with
the takt time, it’s the rate at which a company must produce a product to satisfy customer
demand, the formula of take time is:

Available productiontime
Takt time=
Total daily quantity required

To calculate Available production time =

Total working hours – break x 60 =
( 9 h ours∗60 minutes )−( 2 x 30 minutes ) x 60=28,800 secound
Total daily quantity = 2,400 / 30 = 80
 28,800
Takt time= =360 secound per piece
80

In other words, Alain farm should produce a completed milk bottle every 360 seconds in
order to satisfy customer demand

On the other hand, the pitch is the amount of time required for an upstream operation to
release a predetermined pack-out quantity of work in process to a downstream operation, the
formula of pitch is:

Pitch=takt time∗pack out quantity

Pitch=360∗24=8,640 secound ,144 minutes
Alain farm operation process has a sizable amount of inventory that will be helpful if any
unforeseen circumstance arises, but it does not emphasize the idea of safety or buffer
inventory; the safety inventory is a small number of finished goods kept for any unforeseen
issues in the operation line, such as electricity outages, machine breakdowns, etc. Both types
of inventories should be kept apart from one another. The buffer inventory is a small number
of finished goods that are kept in case there is a sudden increase in customer demand. The
last tool that will help in the demand stage is the finished goods supermarket and which is
used in the shipping part of the value stream to store a set level of finished goods and
replenish them as they are pulled by the customers, and this is one of the tools that is
implemented in Alain farm.

Flow stage
Moving on to the next stage, which is the flow stage, in this stage Alain farm should establish
a continuous flow of manufacturing across the plant so that both internal and external clients
receive the correct product, at the right time, and in the appropriate quantity. In order to have
continuous flow you need to implement some important tools for this stage, starting with line
balancing which refers to ensuring there is a balance between what is produced and what has
been delivered to the customer. Firstly, Alain farm needs to review current cycle times,
according to table 1.1 the Total cycle time = 100 sec + 85 sec + 70 sec + 94 sec + 63 sec + 92
sec = 504 sec, and this is the value-added time, and the number of operators needed is:

total cycle time

Number of operators=
takt time
 504
Number of operators= =1.4 ≈ 2
360

Alain Farm does have several procedures that aid in having uniform work in the production
setting, such as understanding the procedure in steps and ensuring that all the steps are
completed in the proper order. Quick changeover refers to the process of cutting down on the
time needed to change a machine from producing one type to another, change its
specifications, or even shorten the time needed to clean it. The total change over time for
Alain farm production is 157 minutes, and this considers a high number and they need to
reduce it to have a lean production process. FIFO stands for First In First Out and Alain farm
is focusing on using it in order to manage its inventory.

Levelling stage
The last stage is the levelling stage, and this means distributing work evenly, by volume and
variety, to reduce inventory and WIP and to allow smaller orders by the customer. In this
stage, there are different tools, and paced withdrawal systems that are used when the
production line is producing the same product with no variety, and this is not in the Alain
farm production process. Heijunka is used when there is variety in the production line which
will help in levelling the production. It is a box that moves between the process with Kanban
cards and board in it. Lastly is the runner and which is the person that is responsible for
moving the heijunka box between the process and Alain farm should have the runner as when
we calculated the needed numbers of operators it shows that they have more than needed and
instead of firing them they can recruit them as the runners in the process.

MUDA, MURI, MURA

As we know lean is the process of eliminating all types of waste, and these wastes are defined
in 3 different categories starting with MUDA has 7 types of waste which are 1. Defects, 2.
Motion, 3. Inventory, 4. Overprocessing, 5. Transport, 6. Waiting and 7. Overproduction,
Alain farm have some of this waste that needed to be eliminated, Bottles sorted and boxed,
and the boxes gathered, stocked and plastic wrapped are in 2 different stages and place, which
will lead to extra motion of taking the “Bottles sorted and boxed” to the next place where
they will “boxes gathered, stocked and plastic-wrapped”, so we suggest that they combine it
in one place to reduce time and extra motion.

MURI translate to overburden in the process where they are pushed through their natural
limits, and this leads to problems in the machine of Alain farm also it is implemented by the
workers where they are working for 8 hours a day for 7 days a week may lead to mistakes.

Lastly is MURA or variation, and the variation can be in the production process where some
products are not the same as the stander’s quality of the right features and characteristics, or
even it can be in customers and this is what Alain farm is facing some time, where customers
orders are not the same and each has deferent requirements. We recommend Alain farm
implement 5s, standard work, and building flow at the production level, and reduce the
delivery time between links.

4. Map of the Current State of Alain Farm

The process attributes of Al Ain Farms, a dairy company in the UAE.

Farming; Cows are reared and milked on Al Ain Farms' own dairy farms. In order to
guarantee that the cows are healthy and well-cared for, the firm adheres to the best standards
in animal husbandry.

Milk processing; After being gathered from the cows, the milk is transferred to a facility
where it goes through a variety of procedures to guarantee the greatest quality. Pasteurization,
homogenization, and packing are some of these stages.
Quality Control; Al Ain Farms has a strict quality control procedure to guarantee that each
batch of milk fulfils the highest requirements. To make sure the milk is free of toxins and
pollutants, the firm constantly examines it.

Sustainability; Al Ain Farms is dedicated to sustainability and has put several plans into place
to lessen its influence on the environment. For instance, the business has introduced energy-
efficient methods to lower its carbon footprint and a waste reduction program to reduce the
amount of garbage created on its farms.

Products; Al Ain Farms provides a variety of dairy goods in addition to milk, including
yogurt, cheese, and butter. All of the company's dairy products are made using the same
premium milk as its foundation.

Visualize how operations

According to part 3, from the previous part and information from internal sources of the Alain
Farm has been collected, examined, and organized using VSM Visio software. The process
starts with filtering the milk and then involves bottling the plastic models, Bottle filling,
labelling the bottles, testing, and finally collecting and packing everything.

Problem areas and sources of waste

Alain's manufacturing process takes 119 minutes longer than it should, and to solve their
waste issue, they need to cut it. The crew worked a full week's worth of hours, so we add
buffer inventory to let them work less and rely more on the machines, as well as other
machinery that Alain doesn't use. The likelihood of the item running out of supply is likewise
decreased by safety inventory.

Bottleneck and WIP

A bottleneck arises when there is not enough capacity to manage the flow or demand for an
item or service. When the bottle's neck narrows and contracts, restricting how much fluid can
flow out of it at once, it is referred to as a bottleneck. We thus found that capacity 1, which
generates less capacity than the others, is the bottleneck after calculating the volume.

Available productiontime
Capacity= x up time
Cycle time for the operation

28,800
Capacity 1= =288∗0.9375=270 peice
100

28,800
Capacity 2= =338.82∗0.9042=306 peice
85

28,800
Capacity 3= =411.4∗0.9583=394 peice
70

28,800
Capacity 4= =306.38∗0.9416=288 peice
94

28,800
Capacity 5= =457.14∗0.93125=425 peice
94

28,800
Capacity 6= =313.03∗1=313 peice
94

Potential safety and equipment concerns

Analyzing the material and information flow and the related operations might reveal possible
equipment and safety issues. The following are some instances of potential equipment and
safety issues in the dairy industry:
Misconfigured machinery: Misconfigured machinery used in the processing and packaging of
dairy products may result in production delays or safety risks. Equipment examples include
pasteurization equipment, packing machinery, and milking machines.

Hazardous substances: If handled improperly, some chemicals used in the processing of dairy
products, such as sanitizing agents, might endanger the safety of employees.

Animal safety: In the dairy industry, animal welfare is a major problem. Animal welfare
issues can arise from injuries to cows or other agricultural animals, which can impair milk
output.

Current state SVM software picture

5. LEAN METRIC

Alain will be able to monitor the process' success with the use of lean metrics. Identifying
and utilizing lean metrics should follow certain rules, such as: Including people in charge of
executing change, collecting and examining data as needed, wherever data is most valuable,
collecting it. Make data accessible, easy, and trustworthy to collect. Make sure those with the
power to influence events receive timely input, Connect outcomes to certain occurrences
visually.

Process Number of CT sec. CO min. Inventory Inventory

operators time
(LEAD
time)
days

Filter the 3 100 30 620 1.25

Milk

Bottle 2 85 46 700 1
plastic
models

Filling the 2 70 20 400 1.56

bottles

Testing 1 94 28 152 2.5

bottle

Label the 3 63 33 577 0.87

bottles

Packagin 2 92 0 460 0.87

g

Shipping 250 1

The matrixes are in the following;

Inventory turns; is a statistic that tracks how frequently a company's stock is sold and
replaced over time. It is determined by dividing the cost of items sold throughout the
specified time by the average inventory value. Greater inventory turns suggest more effective
inventory management, which can be an indication of a successful company.

Days of inventory on-hand: This statistic calculates the number of days it would take for a
firm to sell through its entire inventory at the present pace of sales. Minimal days of
inventory on hand indicate that the corporation is not locking up excessive money in
inventory, which is typically preferred. Total inventory in days

1.25 + 1 + 1.56 + 2.5 + 0.875 + 0.875 + 1.1 = 9.16 days on hand

Defective parts per million (DPPM), also known as the sigma level, is a statistic used to
assess the quality of a company's goods by figuring out how many faulty parts are created for
every million total parts. The quality of the items being produced increases with greater
sigma levels or a lower DPPM. In a month, Alain delivers 2,600 bottles to each of his
customers. According to statistics from the previous year, there were about 10 defective
components for every delivery, although not always. With this knowledge, we can determine
the Defective PPM as

10 pices
x 1, 000 , 000=3846 PPM
2 ,600 total shipment

Total value stream WIP; this indicator calculates the total work-in-progress (WIP) for a
company's full value chain. It covers all unfinished work, such as inventory that has to be
processed. Total inventory all in operations:
Total cycle time (VAT) or total value-added time; this metric calculates the total amount of
time needed to complete a good or service, including all value-adding tasks.

Total cycle time

Lead time overall; This statistic tracks how long it takes to complete a client order, from the
time it is placed until the item is delivered.

1.25 days prior to filters the Milk

1 day between filters the Milk and Bottle plastic models

1.56 days between Bottle plastic models and filling the bottles

2.5 days between filling the bottles and testing the bottle

0.875 days between Testing bottle and labeling the bottles

0.875 days between Label the bottle and Packaging

1.1 day between Packaging and Shipping

Total inventory (In days); 1.25 + 1 + 1.56 + 2.5 + 0.875 + 0.875 + 1.1 = 9.16 days

Uptime: This number counts the number of hours a piece of machinery or equipment is
available and working.

Filter the Milk Uptime

Avaliable production time−changeover time

Uptime= x 100
Avaliable productiontime

28,800−( 30 x 60 )
Uptime= x 100=94 %
28,800

Bottle plastic models Uptime

28,800−( 46 x 60 )
Uptime= x 100=90 %
28,800

Filling the bottles uptime

28,800−( 20 x 60 )
Uptime= x 100=96 %
28,800

Testing bottle uptime

28,800−( 28 x 60 )
Uptime= x 100=94 %
28,800
Label the bottles uptime

28,800−( 33 x 60 )
Uptime= x 100=93 %
28,800

Packaging uptime

28,800−( 0 x 60 )
Uptime= x 100=100 %
28,800

Total uptime =

0.94 x 0.90 x 0.96 x 0.94 x 0.93 x 1=0.70

¿ 70 % of the time

On-time delivery;

This index will assist Alain in determining the proportion of finished goods that are delivered
to customers on schedule. Based on our investigation and findings, we can determine the
OTD. Alain reported that eight deliveries were delayed last month as a result of issues with
time and shipping management; as a result, their OTD was 94%.

The overall effectiveness of the equipment; this statistic evaluates three variables—
availability, performance, and quality to determine the productivity and efficiency of
machinery and equipment.

Safety and health history:

This indicator assesses how well a business maintains a secure and healthy work
environment. Metrics like accident rates missed workdays, and adherence to safety training
are examples of what it may contain, which is already shown in the SVM diagram.
6. Map the future state

After mapping the current state and identifying the lean metric we are ready to map the future
state Since mapping the future state will help the company know when to perform the lean
tools. Therefore, the company will be able to identify opportunities to design an efficient and
waste-free value stream. There are three stages in the process of mapping the future state.
Firstly, the customer demand stage. To satisfy the customers you need to understand their
needs, wants, and requirements. As the company needs to understand the characteristics the
customers want in Alain Farm products and what are the suitable prices for the targeted
segment. Also, there are some tools Alain Farm could use to understand the customer’s
demand. For example, the finished good supermarket that we used in the future state map.
This tool is used to store the finished products for the customers. Secondly, the flow stage. In
this stage, the company needs to create a continuous flow in manufacturing the products. As
the company needs to produce the amount needed only to avoid any kind of waste. There are
some steps Alain Farm could follow to create a continuous flow. In the beginning, the
company needs to perform a line balance by distributing the tasks evenly in the value stream
and meet the takt time as efficiently as possible. Next, create work cells which are groups of
resources that perform a specific task. After that, the company needs to determine how to
control the upstream production and it could work by using the Kanban system to organize
the tasks. Then they need to determine a method for improvement. Such as FIFO (first in first
out) which means that the products that are produced first should be sold first to avoid
product expiration and waste. Thirdly, focus on leveling. Leveling production is used to
distribute the work evenly. In order to focus on leveling production, the company needs to
decide on the best method. For instance, the heijunka system, paced withdrawal, the runner
route, the heijunka box, and the kanban board. The company could use paced withdrawal
since in the map the company is producing one product only which is milk. Also, kanban
could be used to track the progress of the work. As the heijunka box is used to visualize the
work and Kanban cared which is a helpful tool for the firm. In addition, in the labelling,
testing, packing, and shipping of the bottle we created work cells to improve the process flow
which will increase the efficiency and reduce waste.
 Variable Before After Improvement
Total C/O 117 min 63 min 46.15%
Total Lead time 9.16 days 4.85 days 47.05%

Based on the future state, the changeover was decreased from 117 minutes to 63 minutes.
Which makes the improvement 46.15%. While the total lead time was 9.16 days and it
became 4.85 days. As the improvement is 47.05%. As we can that there was an improvement
done by using some tool. Such as, kanban system, cellular system, finished good
supermarket, and first in first out system. These tools were able to make some improvements.

7. Conclusion and recommendations

Al Ain Farms has been so successful because of its dedication to producing high-quality
products. Products are manufactured using premium components and undergo stringent
quality checks to guarantee they are up to par. Because of this, the company's reputation has
grown and its client base has expanded. Al Ain Farms' commitment to environmental
preservation is a further reason for its acclaim. The business has adopted several programs to
lessen its impact on the environment, particularly in the areas of energy and water use. Solar
energy for electricity generation, wastewater reuse in agriculture, and environmentally
friendly packaging are all examples. Al Ain Farms is establishing its reputation as a
responsible but innovative business by stressing sustainability, which also helps the
environment.
Our recommendation to Alain Farm is that they need to work on their Lean implementation
which is divided into three phases: demand, flow, and leveling. A company's efforts in the
demand phase should be directed at learning and satisfying the client's needs and ordering
habits. Finding out how many, how often, and when customers place orders is a necessary
step. The takt time is the pace at which a corporation must create a product in order to meet
consumer demand, and it must be determined before lean can be applied correctly. The pitch
is particularly significant because it controls how long it takes for an upstream activity to
deliver a certain amount of WIP to a downstream operation, known as the "pack-out." Safety
stock and buffer stock are two types of inventory management used during the demand stage
to keep production on schedule. The overall goal of the demand stage is to effectively satisfy
consumer demand while reducing manufacturing waste. As we suggest that the company also
work on the tools used in each stage. Such as, kanban system, heijunka system, and FIFO
system. But in order to work on the stages they should introduce it to the company and
workers and work on spreading the knowledge and then implementing it to avoid any
misunderstanding. Also, we suggest that the company works on building a lean culture within
the organization. This will make the employees control change instead of letting the change
control them.

Al Ain Farms has invested considerably in innovation in addition to its emphasis on quality
and sustainability. In order to keep up with customers' ever-evolving wants and demands we
recommend the firm maintains a full-time research and development staff. This has allowed
the organization to continue to innovate and dominate the market in the area. The success of
Al Ain Farms may be attributed to the company's commitment to quality, sustainability, or
innovation. The company's dedication to these principles has helped it build a strong
reputation as a reliable name in the market and win the devotion of its clientele. These core
ideals will likely be maintained as the firm develops and grows, keeping it in the forefront of
a UAE's agriculture sector and beyond.
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